Teva Pharmaceutical Industries Limited (TEVA) 1 Nov 182018 Q3 Earnings call transcript

Good morning, ladies and gentlemen. Thank you for standing by and welcome to the third quarter 2018 financial results conference call. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. I must advise you this call is recorded today, on Thursday, November 1, 2018. like over now speaker your would Mr. today, I to to hand first And Vice Relations. President, Senior Mannix, Kevin Investor Please go ahead.

financial and Executive as and you've Thanks, release well PR, being in Tracy, Kåre presented manage review Head presentation. trends. non-GAAP are earlier begin in discuss non-GAAP to to our Officer. our business. of company's XXXX this to joining and performance, our supplementary Commercial; provides our hear as of us internally We the understand To on and this thank results which will evaluating financial as be call, of to Officer; Chief and and Brendan today's relations can investor on America measures management copy meaningful we O'Grady, Schultz, www.Tevapharm.com, call Financial company's today's North our in Teva's you, non-GAAP a discussion believes includes that Teva's the everyone, slides earnings evaluate call, Reconciliation its from financial by investors website certain better press morning. GAAP as found third McClellan, inclusion facilitates analysis the Chief app. at measures Management available Further, to disclosed copy the was measures of earnings measures SEC. Teva's non-GAAP GAAP opportunity financial Mike and A operations, operations the information had as the uses well today's an note have financial for our release, on measures today results. to of hope issued quarter Please by both this defined on of

now approximately that a you the open please. the if would, turn with X I'll call then that, run to will for question-and-answer to over Kåre, Eastern time. And Kåre. a.m. We session call will

for billion. better I earnings used of about results joined flows in thank diluted million non-GAAP came and down, a growing. being would we all and in. basically date, had quarter, a been one Teva. Copaxone $X.XX quarter, listening and have since our slightly exciting And it had had very the live we sales including parts cash was currency, of I be shareholders you we expectations. Today, $X.XX, Overall, achieved. all the I'll by in It products of we GAAP and up challenging and of sharing our you it's per other the of Kevin. business, which your loss $XXX at own free reduce confidence coming of saw happy positive that do year we that that per you, thank shows And the I on from than continuation were expectations. The from revenues very share share to to We hope diluted ago the third the will we headwind US$X.X and to different take past has quarter from Specialty of flow debt. they and headwind Thank of to year, see going had all and you put that is cash AUSTEDO today we elements for to company. results you seriously, like I'm our with in trust trust our your and we In the the utmost that me

are with had making we that also And of the We the we much on big know, program track. is program we you see ago. little we a by nine reduction than As base spend are we started AJOVY. progress approval very the months, satisfied reduced restructuring in our very base. significant a year a I'm spend more billion. here. In $X.X very The a happy

we marketplace. volume in affects what's of you, remember of strong call AJOVY. do basically we maintaining in maintaining launch good in turnover, very and That the can on seeing important to by was, a it very nicely. but and will And we happened. our later the AJOVY the are We share slow of the we share very You tell looks share the on including I of strong quarterly And nicely. Brendan Copaxone see it comment continues that course seeing most were approved. more last is grow would a dosing. details. its pricing, on there happily the likely get acceptance, date which predicting very AUSTEDO September decline also are far lion's even And of are that PDUFA But is at we some

you Our and the $XX.X but of down generic portfolio, supply. profit. want market small a and business seen intend couple year to the to the roughly left we but wish second quarters, $X.XX how been rest billion non-GAAP Generics be from are look to the are profitable. that supply debt pruning the The talking to too to The year. about in billion. luck, likelihood taken a in. full both taking third Based our products in are, stabilization. to think good actions not the a good be quarter, we early our signs started. the we We now explaining firmly, we the earnings increasing stabilization, if which of year. on do band $X.XX have that was on We very previous to are have the for other the has billion, clear $X.XX. that And guidance on quarter $X.XX, That's who the it's to $X.X loss-making showing have that the marketplace we of we competitors we at revenues portion band, performance look third now the EPS we've seeing it's It's make are willing that decreasing conclude not been we by I net to of a unsustainable $X we only now a them when there's high quarter than at as of It's up less last think a to are that and to

where free and course, to cash of on to $X.X end currencies, depends to on on. pricing, range. on The performance But strong the swing we this so close billion launches, $X.X quarter, we in estimate on from billion all flow, billion. $X.X we an are taking also now we billion constantly be based the factors on up have Of to the we $X.X think will third

spend program was announced a restructuring last program. restructuring explain to like about base year. I'd The the Now just little and mid-December the bit

So And we all of we quarter. as a it What me the of talk we've at every base reduction. three are said into I've sort quarter, is cost. spend repeat, we just about spend let quarters when base, our talk the the seen end about third

expenses, operating basically, that, from COGS, we including do but dynamic currency reduction. non-GAAP a all we $X always billion criticism effects, I for come effects, The of something And cost the set okay, say decided currencies, reduction, it everything. something excuses, was people So they a this to with then they everything the it's kind target that of way else. it's had this including why beginning the and of did reason restructuring

to what we XXXX. $XX.X the So cost billion XXXX absolute happens, will down billion take I from was the wanted or to no that in below make it matter $XX.X it clear in

So that's billion. straight $X a

the Now have strengthen because how from spend overall, then nine first come with In And the that? dollar far billion. we the seen we've base we $X had reduced XXXX, headwind we've a months, by currency.

really is we what is when that are target reduction, billion, of we're billion. So net net reduction $X talking about which the talking the about the $X.X

$X.X this is actually year restructuring only target the billion. the Now for plan in

change that billion. the is XXXX the doesn't that fact However, for target $X

So fourth to we with target nine the $X reduction. the net be spend more billion meeting XXXX quarter, course, our of bit in a billion come will in and $X.X then the in of base hopefully first months, for

of to easy. doesn't We've had close come a lot facilities. this Now

plan. since some XXXX this a it's continue of have than plan employees, And say to XXXX. employees to will, all to of We a X,XXX start of all extent, includes goodbye the of the lot that restructuring and two-year more because

further five see you coming So a the during will quarters. reduction

of As in XX,XXX total reduction remember, manning you the is restructuring plan. the might

you loans, to used rid of net get we corporate term bonds. all some to also course, of end on we bonds. debt. of the has take have the And the top And new been nine at to flow but debt. let's look debt since as did net the year, year. months in a net the was billion told so that we you the generating I cash then a Now last that, repay of that by of used $X.X been actually reduce this money issuing remember, of reduced And

$XX.X look billion. it's If at net now, the to you debt down

would We below $XX debt billion is a know, some to that seen target. we also means address years the to in X time, so the times And is in billion, of We basically for you have until we that our I reduce in to first we've target. flow pipeline. EBITDA, want like And which majority cash long-term have that the the we very as $X.X very cash. developments financial coming reach debt use nice net be positive. the continue below will gross the of to our debt now,

was significant meeting. events. approved, mentioned tell we the the planned, I I started on got date. just that to the went that me was four that and the So you, And as ready. on And based let we we approval on that fact Friday. AJOVY Tuesday on point PDUFA already I can were to launch

in way worked in promoting shipped marketplace week. the the the coming had being force And scripts the everything same the first we week the had we sales So on street wanted. after out product we AJOVY. basically the all the with And

the tell flexible very about that I'm happy also it. about I'm you very there. So execution therapy. will we have more Brendan happy CGRP most sure I'm the

month, profile, the You or reducing your quarter, take a whatever therapy once same has days. clinical number you It excellent best. can a you of once can take suits your it migraine

innovative, product Europe. to going also to are this We bring good very

get patients to of it our we expect to are strengthening approval markets we and around first the world bring And benefit course where half all XXXX. commercially the of will We of to eventually revenues. the active

exciting have also with We III, a fasinumab. together Regeneron, project our pipeline in partner, very Phase

And announced with Phase top we on line efficacy very noticed You the lower efficacy. III see doses. that results we probably good

acceptable is of risk say, therapy, misuse make this which not which in opioids. profile, safety it's we We to get see remains the project, comes what III now is Phase can signs the need If competing there you So you an safety not you case that therapy, are out an so with long-term could same, trial. opiate-based that creating pain this will a okay. the look to that see then

be pain it to very which U.S. it all it if So a welcome way in will makes hope. addition the the through, therapy I

our also the together progress had biosimilar on in field U.S. partner, We Celltrion. with the

called It's a unanimously that what's being have to the product. Rituxan, Rituxan say this recommended to And a happy proposed biosimilar approve to We I'm product. CT-PXX. advisory committee very FDA significant

launching forward looking to are it. we So

with We have patent also settled Genentech the on litigation.

I approved. forward to to it. of As are But can't rest of see you EpiPen it pleasure great we the comment Generics, we generic planning ours actual it, With that the regards being launch. other date looking on assured our and was know, a to just are

supplies constraints result distribution manufacturing. during right fourth that during now product ramping the hope next up during help have type year. in or And be – And And up alleviate the our that increased the a to of generic here launch U.S. for are to be we are we will will supply ready ramping by wide this We existed of EpiPen year. for able next in the we getting quarter

a we also think As And give you world, but North news should Brendan bit U.S. can primarily the rest American hear, to lost to on U.S. are of to ask related our Brendan. to the us exciting a the Please, these the and U.S., details more I business.

sector. start will summary going morning of on I'm to American you the a businesses. line. And Anda is North care and pharmaceutical to everyone diversified Generic the Thank of business as as you, an Today, positioned Canadian Specialty and and Kåre, as overview our with health business. U.S. and give the the high-level I well within good business, North a Teva dynamic American

combined $X I'll unique a of and in Anda. largest discuss Strategic the as the specialty which investments wide plan deliver slides, your with Generics market, the have first a the our of on be of focus We a on of our backed coming products. looking and product I in to attention collectively in approximately more the range we The detail in price play where market a in well and increased separately, by in portfolio each U.S. world, will the as distribution billion to business. business AUSTEDO launches businesses share significant Canada in stabilize continue role U.S. at grow revenue the generic XXXX. would In in stabilization. XX% businesses and future AJOVY, long-term stable U.S. Generics leader

earlier, mentioned our business while come and a maintain the Specialty major at AUSTEDO primary focus drivers our quick I AJOVY, in in therapeutic of look As we oncology. areas CNS, and respiratory, Taking the growth Canada. specialty from

market one XX%, to two with similar number drivers making Canada generic is the player Our the in number close share of us and the U.S. to generic very

for U.S. solutions It that the for fourth many creative largest look and well partners. of a ways as our generic business to the model customers. both internally secondary and pharmaceuticals range we the And supplier manufacturers wide largest and evolve for distributor our of in continue offers to as optimize business external Lastly, the Anda Anda is

slide to pleased to I grown thus turning update are trajectory. steadily. we AJOVY, the on start demand with Now Copaxone. XX. And first AJOVY AUSTEDO, And I'll would AJOVY. has provide with and an far like

within of the XX seen dosing and customer easily delay. hours best-in-class are on without pharmacies starting Doctors patient access few hours very We of through efforts receive response and a XX a for samples administrative country. patients flexibility support patients patients prescriptions prescribers, AJOVY very have are of product. the the continuing had through providers And within pleased filled to XX both our retail can have both the XX monthly across positive our the focusing and brings administration Most ordering programs. hurdles. to and Teva care reported the to physician's have and Health quarterly to in and access office providing experience expertise with appreciate their specialty and

one want on to the physicians commercial AJOVY, is comparing When week the XX. it the I our Turning nationwide. point said, prescription treatments, to as available account wholesalers across the important pharmacies out that anti-CGRP with calling to in and trends XX began September slide Kåre force launch of prescription quarter quarterly represents seeing of and sales TRx. being to drug product quarterly normalized prescriptions equals of a one of for of AJOVY written dosing. of for prescriptions. three And prescription XX% refer treatment. as quarterly total prescriptions months revised three the One where number approximately We or are prescriptions – AJOVY's monthly we

in You strong. four can normalized is see from this graph that first the AJOVY's uptake weeks TRx of

for the In the addition, start patients therapy in are accounted a office we AJOVY sample. samples not via TRx And many seeing physician's uptake. in are

four competitors prescriber XX% unique Lastly, first headache about account consistent for AJOVY and the over number neurologists of AJOVY for specialists And the with our prescriptions. weeks. appears

of affects Turning large occurred unmet in And QX to launch XX. disease reminder, dyskinesia XXXX There's XXXX. the XX,XXX a commercial dyskinesia in XXX,XXX and and AUSTEDO. AUSTEDO currently on affects for affects where syndrome Huntington's people, slide tardive with the these Korea areas, disease we people in and as pursuing second people, indication quarter of associated an are the need U.S. tardive for about Huntington's approximately in a XXX,XXX Tourette for is approximately medical

at If approximately revenues you quarter revenues over AUSTEDO QX will you the net to $XX look for continue slide, quarter right with the see side at grow million. nicely of that

sales are service plan. in access AUSTEDO. National to XXXX million and fee strong as across commercial on for track D achieve Medicaid Part is in formulary our We $XXX Medicare net per for

market say maximize XX and Copaxone along, North taking market preserve the following are for of to slide which and compete those On continue the in appropriate that we last will I MS to share measures profit. the for and slide America, highlight is you

first a at versus higher Copaxone generic milligram XX QX first QX approximately lower further volumes that competition, of generic And XXXX Copaxone. resulting remains the the you approval second XX generic continues XX% TRx in Formulary XXXX approval price of the impacted for XX Copaxone stable, QX sales by XX XX a of to XX approximately segment, QX access be net of market XX% milligram Of $XXX milligram. net generic milligram to with XX.X% was Copaxone see of impacted MS will partially the gross the glatiramer Copaxone million were share with sales Mike? and concludes adjustments. by were review net update around XX%. in nationally. milligram America. market. as and to over of with And reductions XXXX the And exit I positive it That total Mike McClellan. North hand share market expected in leader milligram

hope review updated now I XXXX. issued detail like this to you, to earlier take Brendan. morning. release outlook quarter provide some press Good our to morning, and more everyone. on for for some we've had chance numbers the review you've Thank the a the I'd time

So with performance. of GAAP We net $X.XX million, $XXX quarter loss of quarterly GAAP our on during per a and turning of XXXX. to a basis the slide start share a posted XX. We loss GAAP a review of third

As we by amortization. GAAP the impacted will next detail charges mainly slide, and results recurring in were impairment the

So turning to slide XX.

Actavis Looking rights largest non-GAAP R&D assets at in in Generics of impairment the acquired process product our adjustments, to due were transaction. the and the

were majority addition, of XXXX, charges with consistent significantly recorded. million than million, prior already which Restructuring In first totaling have lower of is of the actions assets had the quarters. as in amortization two intangible $XXX of $XX the we the quarter quarters been

our third in compared a slide due XXXX. Generics U.S. mainly were non-GAAP performance and to competition for reduction our QX XX% billion, decrease in on generic The to at XX. was quarter looking price the sales to $X.X So Revenues erosion of business. Copaxone

impact revenues and business discontinued products the saw certain following the divestment a of from loss activities. of also minor We

compared on in impacts to price mainly basis XXXX, due and the gross margin to Copaxone points declined Our the U.S. QX roughly XXX Generics

in Non-GAAP However, little P&L for about a program, earlier, our did Kåre in bit gross came to at QX decline restructuring affecting a highlighted operating talk to XXXX. offset items in quarter. from of income. presentation. EPS see the which we'll and The flow slight helped the we savings more in compared improvement the trends And margin ongoing cost $X.XX later partially the cash

The million quarter main slide U.S. that overall operating million. peso, movements impact a and the to the see performance, modest third XXXX Turkish negatively year-over-year our by Russian by on had our $XX We against during ruble. impacting rate that XX. in Turning were $XX and exchange Argentinian of dollar the relevant the income value the currencies decreased operations to lira, the revenues

We in expect which revenues slides. be to guidance, for exchange this we've headwind the at rate end will movements, I'll including the weakening And my of a our a Euro, fourth updated quarter. cover our for XXXX continue accounted in

slide We a we been So in full we We the profitability. optimize by attributable XX, as trends declines a portfolio, turning revenue of seeing that QX look the resulted pleased product in reduction at an expected the segments. to sales $XXX having improved in American finish $X.X new erosion to efforts accelerated million in Generic efforts will versus introduction revenue were we and products. to North believe more to ongoing year year the well throughout XXXX. the rationalization of business than and is business our the take following the billion we've with And significantly as different North slowed our estimate These Generic the the rate of QX. of see this some revenue American

strong in quarter, as covered, on as straight our in currency following and the enjoying, that mainly to of uptake in price seasonality stocking sales the device. wholesaler has in remained Europe business. RediHaler which of of of the lower QX, which a quarter first a Europe. is addition, Brendan XXXX business impacts some the for new relatively Revenues offset well with mainly attributable reversal the the in AUSTEDO, continuation to Copaxone launch performance and had of This dropped volumes Anda tailwind been was by the in second connection due in quarter was In the in the flat QVAR

for recall this international business, organic adverse in an We expect driven impacted the the to and profitability. improvement impacts, legacy also Japan, been revenues as the is foreign market, situation, was by unfortunately which expected Argentina, continue will a mentioned primarily regulation in sequentially, in earlier. sales which unfavorable currency Russia, changes in declined exchange well have as be as lower of In overshadowing pricing by markets, brand impacted its as the in markets Turkey products. that well headwind erosion mainly International I by valsartan

a the at all negative our Hungarian the other look remember and quarter you to the of of and in QX to were expenses you see the of categories. $X.X and result activities, as R&D a lower and XXXX impact had closure goods We the ongoing you women's compare Phase see XX, the reduced months As QX Venezuela, across components the operations, by slide on spend deconsolidation expected extent health, than XXXX, XXXX, sales in second distribution the compared lesser was discontinued divestments nine gradually reduced spend spend all base, other trends, experienced increase lower this of due X when programs On look marketing a take lower billion project of trends to which QX first and a from the discontinuations. XXXX. of to on in sales mainly significantly and our efforts. the Costs than are that quarter restructuring of declining XXXX. we closer a our please at reduction and

a significant to amount quarter due foreseeable decreased compared no expect Our And XXXX, this were there significant income we items G&A restructuring lastly, quarter. to to expenses program. the ongoing do see And third future. our other for QX not by XX%

cash $X of offset the of second (XX:XX), a and settlements. cash capital a payments, and up lower free comparing a few which slide million] partially coming had compared to for level by amount XXXX, of (sic) restructuring was the from the to due remind Free billion, turning working quarter like non-GAAP income. million with primarily first QX XX. to is $XXX one-time items, lower net flow flows, a slightly adjustment settlements So third legal [$XXX to that the to you approximately Allergan significant quarter quarter when I'd other and

XXXX to So the turning now outlook.

in an earnings increasing this year, our share time mentioned in the Kåre including for of opening remarks, increase $X.XX the full to As per year third are to we guidance range the $X.XX.

Our in by the of in date. tax timing ongoing dividend X.X rate mainly pay preferred the adjusting unpaid guidance convert QX, anticipates may in to eventually issued of the remind the launches billion launch shares the fully of flow to erosion in than the a convertible free that no and lesser count longer to performance year year we've reflects at end. these Where be lower in mandatory upwards shares cash I'd effective the now be an also U.S. were in expected year to increase by I'd mid-December including reflect all and we that But like issued This we share to of spending our in determined you for a impacts, higher like more updated in full that in exchange projection rate, we will level also support the the lastly, We're to affecting to year due we results guiding QX, better Copaxone And of sales, tax increase ranges the which will our dollar. of than a strong to outstanding by our offset generic our AJOVY. that will level that shares favorable result slightly to driven have foreign spending, to in dividends diluted expect will XX% U.S. a will EPS. be preferred date. XXXX, December that strengthening share sales, seen currency end XXXX. the add downside extent, – The

my like operator the I'd call. of much. and this turn the Thank very over to to call remarks. start So our the concludes And Q&A you session back

per follow-up. you. please your Thank to question person And one you. one with questions limit Thank

Your question RBC from Stanicky of first line from the Capital. comes Randall

Great. question Thanks the Kåre, question. very a much just you. picture bigger for for

support next out year to outlook. certainly trough that today year. that the put you And pointed results previously a You've of as some

XXXX, improving trough XXXX outside about takes And margins, to beyond? support talk potentially generic and you about the outer does does growth? and that outlook you're puts which the that XXXX of today, AUSTEDO how think you some may add Thanks. seems of the drive thinking As stable AJOVY, that here and result about and growth with year can

Yeah.

So of course, there's parts. be difficult be bigger picture. to of exactly a happen. to happy it predict comment can I'll moving to But things going the on And are when lot

to way less generic effect So from discussed less The Copaxone course the bigger over a and we get bigger as that Copaxone picture speak, so a the the unchanged But picture, absolute course have if time. of in it's you going we the what from quarter during numbers then percentage less gets past down. is year. going assume of certain loss per

key been over you years, severe the that's U.S. which negative negative driver Then driver. So the has last the one three very had Generics.

been being that briefly many the creative on things all next two, these originator per There's before. repeat average. we've side, coming waiting. more reset, successful sitting with in And the a others we In ANDAs four, the There's the over the do and the of taken call of very a But view just it is our Generics. the say, approved The the has of we've dispense would the I'll basic attractive by way do. on one, consolidation and there Generics. Generics. inflow I could U.S. new in no that view. reduction it, a, the market There's of point have dynamics volume U.S. this payer has you discussed FDA, I think the that is biggest ANDAs all fundamentals actions Generics the value categories, volume not changed that years. XX% on of just from point competition as written, of remain out That three, no from part products getting launch extremely below in of with changed more pipeline that inflow stabilized we five have the situation. reduction

and is stable just you Generics term good business in a way So if profitable. long it's good also so a it manage

or best are think that it are level more very it chance a I our a my promise can we we has see to that good at be there's to it mind, I in you before sustainable. will ensure where profitable. quarters I that now doing will We one still also think, be think two stabilized.

basically all signs it has reacted because market the think doing. the what been has I to we've

a there's there. So I chance good think

business. a business. you means Europe Then for and it efficiency. And actually better chunk of and you and you your optimizing course you It's that then our and revenue probably And also of by the quite XX% a margins revenue have XX% can have our around manufacturing international income. your sizable of is management profit. long of notice, footprint term by part of optimize stable portfolio if ensure that So operating your

best will Now that ever year year, year things. had It's doing are The be in the business in Teva best this We is Europe. very optimizing have this earnings in year we probably stable. Europe actually nicely. ever very because

in And Everything earnings like We restructuring the research together that's offices, sites. this Europe. the is plan. are putting of part facilities, improving

Then So that go. digit be going a can't single nice they're forward. to We where growth such have say the things more driver currencies. to probably remain will going unpredictable you as

also CGRP unmet next lot have years a be what what But will pool, that you where the be huge And with anyway. patent There's you patient long course slope pool course into have you And exact a exact be launch. of of which over be of AUSTEDO, treated means to a product continued that's of will patient of the enormous the then the of with being growth situation U.S. There's same seen you moving is AJOVY. AJOVY, And a yet. can you change, out not There's two of significant, are unmet there. right to AUSTEDO. won't need future. could AUSTEDO and remains huge the the slope good uplifts, which not So you enormous they're going protection an four need, a going on have say, average assume the, parts. early it there's but very

to a all at we have So to have of we if more XXXX growth I XXXX look it's optimism. course cause you in negative. positive And drivers precisely for and predict will will going it's impossible end. all that's think in But than where it,

would you still year? call trough an EBITDA XXXX But

to I year, correct. is trough say most think it's difficult exactly. likely that be XXXX the EBITDA will But an still

Okay. you. Thank Awesome.

Thank you.

Your line JPMorgan. from of next Schott Chris question of comes the

Great, first one AJOVY. so question. My on the for thanks was much

access You've we some of obviously a gross and net here. volume product trends watch only available? your do the last some with about could three covering the bit can proceeding? month heard little see this more you. you are for two to see covered? encouraging we But as expectations I formulary payers seen we very talk launch more most all CGRPs that specifically, Or three like of you being guess the Thank outcomes of what products

Yeah.

you give I'm then So few I Brendan some can comments. I'll sure give a general think just details. more And

quite kind as one manufacturer the PBMs to realize States whole what United launching the time that product. the all rebate. access So in thing of The not complex, the whole first have product negotiation all know. you where will behalf It's you just with product their negotiate Every you a manufacturers, launch. there's on I'm time of happens this customers is sure of a be a new every with element, one negotiating launches, all,

of block. of three an types You negotiate out a three, three, three. out block, Either of you're whole one out there's grid an access of different you're two NDC NDC not access. you're There's with

You one, $XX there's no There's $XX copay, edits. go copay, have copay. three there's two, to step through

more being details thing, there clinical you less than I've is rebate there benefit for of less the been some benefit given. are, more quite enjoying is The the XX are, more it, of And The rebate trends. trend have, down which complex. The the have, the technically less there's is to more get So years, of whole is the less is you That the said, the general general is rebate more the when competitors rebate given. clinical course given. competitors course given. you

would quarterly take It it monthly. you unique side, that of So a ease product. the use say I has is can and clinical in AJOVY fantastic a on

in enormous benefit some of terms has strong has class of it patients. So days migraine-free The benefits. general in really creating CGRP millions for

valuable this product. side, a clinical really is the on So

you many in clinical of you could sort using are counter exactly of are use side, terms only get But you three the how you them, days are relatively the in benefit of get terms in how there of use out them. say the others. migraine-free not that products On similar can similar efficacy, you since quarterly, they in AJOVY not

straight, tactics. it's course say And that the might side, lot being that there's of one exact part now. you Brendan, there's negotiations. you can a of more might more in coming a more competitor, give lot So But, a actual will lengthy of said, be than situation statements it puts That completely rebating. could And you pressure on the some the which so a on process. of out, be see right light

Thank Sure. Kåre. you,

seeing mentioned, the well We those as fact we're And as patients of all benefits, And most manufacturers the XX% with timeframe, still discussions quarterly discussions. the major quarterly in large that payers. some of will do November well. dosing. mentioned, in tell most advantage discussions of the that who into we're as ones national as dosing. even we very through I those So what proceeding about and December, XXXX. I that continue of offer have the payers, of you expect we are Kåre payers in the the that to going are I in of in unique were negotiations September will active with they're as only payers that regional take started decide back think most

a months with bring us every in to gives patients physician can different the the usually obviously most a on do them, three to marketplace, home, – can at in two little at this because the they place may seeing easily it as physician can that want side. and inject that medical have about not either home, for their either inject they're So anyway. inject patient the potential patients quite They bit product will. those or there. Or even there's But

little a the to work longer us payers. little some a gives bit those I think, of value through takes a bit of different proposition dynamics it and So with

for reason I So I would there's how not this wouldn't evolves. panic think about you everybody And class expect see that on that will any every formulary everywhere.

or select of the large may the Some plans two PBMs three. of national

three and an very for be products individual to Some may from preferences. there before should of be these We we that that think the may all we wait level to differences market similar, a select are And there at this may rush (XX:XX). although population three. probably form judgment

the we're are those So through. that dynamics working of some

seeing the that as like to ongoing. typically that that's discussions gross part think something far I of the of think But net gross north this to ongoing. And a it's probably marketplace those that. that's all and As we're discussion XX%, I are net, evolve fluid, in very somewhere

Great. I appreciate color. that

Just...

Maybe as concluding... a

I'm sorry.

remark, a we products. concluding the As and competing for AJOVY access that will Chris, I'm good convinced see for

longer Is As as a to should that play to market the And just maybe Or once is XXXX, gross of quarters we I expect initial kind the Great. I'm lot could nearer of term? XX% we that kind something just we dynamics through XXXX, launch. follow-up net. a this first term? of out, go few that expectations formation in on later of have a trying a set think just in these

think we through – a it's happen We'll a there but as is a that as XXXX. out stay expect XXXX, I what go a relatively gross put evolves get I the net. placeholder. settle there, we will – XXXX don't or and – see I it'll probably not that to mean, here if as expect that, benchmark but and less I at certain than – we'll market more as to And No, out obviously necessarily stable that I as a

So still very eventually early, see again, it's very fluid, up. and it's where we still we'll end

much. so Thanks

you. Thank

Your the next from of from comes question Oppenheimer. Rajavelu line Esther

the Thank my the well. you. and received on an And on Can you Good on Thank how taking you that any share between monthly have feedback from helpful well. questions. update are morning. provide options? plans, prescribers if I autoinjector you've couple quarterly the choosing a as would they be can then for you as AJOVY

Yeah, sure.

the week I it's as than in XX% quarterly dosing, still are a happen thought launch. which honestly, So what of mentioned, patients early fourth beginning. advantage of – would little of and we're about at quite bit There's fifth is not we taking the higher still week, the a

I preference. days. patient by largely early think still a it's So driven it's And being

young drastically then very for their days, the and they're can product to they have things and can it doing If hectic and about are females as about for If and not quarterly have makes think migraines if you for other very convenience have this or overwhelmingly it work patient it's you – that another a things, lives. easy worry think possible. population, XX take if busy control traveling very, it I as patients to simplifies very much

that of it's form, so But that's the and a it the general it's be large and higher of a early, stays stage, XX% XX% it's wait lot been there. a see it. think drive to continues couple this One a that have to we would have the sorry, and of think And forward. see if that question? if little or anecdotal to right in as quarterly you And we'll usage And that seems we continues dosing feedback. out compound I bit. how above driving national would had quarterly even what's second dosing I to headache that at centers. move I'm would

the still question the – autoinjector can I on plans. Yeah,

you wet the new a so based use matter a with wrong you the what just And a autoinjector much incorrectly, my can it we a handle that your diabetes dose shot, – is and the also an don't you it's But always it. get happens when you it But incorrectly insulin it's But just get autoinjector. new you monthly is for doesn't if wet the issue risk on like get it's your pen floor. get once to with matter I because drug a spilling dial call That autoinjector, a which experience injection are actually injection, you angle, injection need shot. get of pull the also all a you always all insulin and pen of call where diabetes month out a a offer the inject so When and if another it's long some pharmaceutical. then that's you you and that of problems space, if patients. people it's therapy, which a somehow have all autoinjectors problem. if would interrupted push dial I autoinjector wet you new in not on shots. to to a a plan can There there's confused solution like the We the take injectable need. on shot, you an have therapy Otherwise, you a new then issue, an the is working Again what do and course. autoinjector, to an stress, therapy is a

the to injections, it who autoinjector. solve patients for are issue completely use about So an really not really confident doesn't

prefilled very we So and a to way where intuitive most but which likely get can going is also we offering who could offer And that, both injections. forward, syringe, you handle injection. have less, autoinjector easy much people those the your you an say, will be for will wasted

that. So that's for feel just to a you give

on to add to just and that. Yeah,

prefilled As a an the in headache couple or a I patients. out syringe seem barrier said, been obstacle does for to centers. And the of I've be not

very a injection or quarterly As it's once regimen. simple Kåre said, a dosing easy, administer way a to a month

So it has at a limiter been not all.

And the guidance. Thank Great. on quickly you. then

is higher. revenue guidance guidance largely and your EPS the same, So is the

versus So taxes can lower from expenses? between you impact breakdown us help please the the understand operating

Yeah, thanks, Esther.

guidance is reason talking the headwinds been currency revenue haven't taken we've up So about. the we the

have some natural do hedges. we Now

and gross So the the margin, what's rate driving the tax EPS lower margin. really slightly the slightly lower in better are operating expenses, increase

Thank you.

Thank you.

from David Your comes Amsellem the line of next Jaffray. Piper question from

Thanks.

ones. of couple quick a Just

XX% And to probe to I'm I back class? bit color it'll sense sort AJOVY, a heavily for get isn't this, of of little Just to I wanted to on gross AUSTEDO. product feel that going product a on generous why just just you And be XX%. gears then just that to level. mean and at that net, your contracted trying further switching the just

update mix You an is between sort just the we'll has on coming been of maybe in tardive of and much talk when and – also where the growth Tourette's. And [dyskinesia], see of Thanks. about late? chorea data from

Yeah.

say say high? when think XX% you that you too you generous, don't high and meaning you enough? Or it's So that's are a little

don't words, to high think it's net. I enough. In other spread wider gross

Yeah.

decides it if open interesting like of Will how I So wait perceived it'll to some relatively it we'll formulary to a will even similar want be three. come have three and it'll it's Or access. think by it market by efficacy – exclusive be? I early it of go this it And I that may to be said, put think limit on see going plays XX%? there vary three with days. see out. be it'll one it'll And market Having is the how relatively I all to a forms. vary to be with they two And and XX%? whether payer dynamic three. that payer. to Is be Where think

how see fluid is ongoing. I XX% I good and a Like general use. it goes. to the I said, wait as we'll and So think all are conversations point said, But

I'm lands not sure. it where really So

TD. as As a far about as TD, as three-to-one AUSTEDO it's in HD versus far

although we there covered coming patients is many And growth the covered out at on are either there or of patients. are still still most another are think getting all. that product HD I HD So from TD, aren't

opportunity segment. in the coming of HD. from that lot TD the certainly there's growth is I But a an think So

the I believe that As far is Tourette that months syndrome another data, as out. to XX XX

Okay. you. Thank

Yeah.

you. Thank

of Fadia comes next question Leerink. line from Your the Ami of

morning. Thanks the the AJOVY of on couple Good A Hi. for question. follow-ups discussion.

to gross the the net, gross XX%. have the signed some of been we've contracts to XX%, on closer the to Firstly that heard net in more

though then question all And Generics Secondly just I'm the prescriptions, prescriptions just the really talked number business. XX% prescriptions? of quarterly are availing that about? patients the you on to curious is drove dosing? quarterly Even XX% of regards with are what So the the next

the business XXXX expect flat Generics You a you're to commented at probably can XXXX? we see Thank to we Are point you. Generics where be starting versus that stabilize.

Okay.

then start just the one. on AJOVY last get with some Brendan And I'm that from sure comments me Let again. you will

to for Generics. too be where early XXXX. Generics I'm the asking will it's you are assuming So say North American about exactly

That's right.

It's early say. too to Yeah. far

going this we products. North to some with our $X of course then business. now, revenue And would went million have So of on we aggressive a cutting seeing out American basically are And repeat, we that tail of with are that plus like we margin an part we come we And assumption products. business Generics, nonprofitable to billion. the went in just to that probably because gross year And from improving are into of out is something all that's close $XXX this of $X.X the cutting Generics slowly is year dynamics the nonprofitable billion.

in driving continuing be that will We direction.

the We majority will of have of done it the we on do some the year. next tail of But cuts nonprofitable. more course

where the quarterly But being will seen. So just give comment about dosing. course we comes the this for it. on scripts February we thing remains the to be specific of be when about in for Then the AJOVY, a XX% guidance of exactly it out to XXXX, full-year

script quarterly a of every third of person then it's gets scripts if once Because a only gets course Now tricky move into thing the to a XX% remain calculate, we coming months. quarterly, who dosing month.

of volume who dosing than more doses you or day the quarterly. state, steady sold-out that of are at the quarterly in will call you XX% actually means taken XX% taking a be it's what dose of Which taking a a of of patients being every volume, So the sort means only. patients of could

how antipsychotics. once in knows. sign less GLP-X in don't once increasing in that a injections. and there's with market there's drawing a other, whole antipsychotics, beginning. from towards that's more for And quarter injections. sizable experience element the there's develops. to than it's The moving a say, We less a diabetes in has we both therapies, it segment could injectable who popular injections, But month, assumed Nobody less wants a Antipsychotics, been that's big again, here see exciting you from at least very So us my know.

of really there's a And for among of everybody kind this So I think important I is need think colleague simplified realizes, north Brendan what detail, was patients maybe last XX%. which my then therapy. said the

can favorable, where is always terminology, what the what in So you is discuss not.

us, rebates the negative it see course lower XX% it, But a the Of available. question how as don't people see we I side. north the but on know for of means better. lower the asking

going plus to to XX% it's say. it's something. So Where end, too early

It We are way are to for for still our good not in not It good be negotiation would negotiations. would There's no position. more competition. we going specific. be get

we questions the right about think it to here. close I So Thanks. have

Thank you.

you. Thank

Your Wells next of David question the from from Maris comes Fargo. line

morning. Good

there's Just growth the small been like historically, in there it And Generics, decline. to on sequentially, quarter European from a was sequential seems a second swing decline. not a

pricing change small the language? even if a you Thank in You just impacted press there, release environment that? just a mentioned change, the that that in is reductions. small that price boilerplate saw Or you. Is it's

take one. I Yeah, can that

So to you impacting if things you look a business. of QX the that. there's seasonality in QX, couple from when little bit look Europe, at a are that There's Europe

of many pricing impacts. Europe really But XXXX. Copaxone. look some Copaxone on that versus substitutability. is we if you QX talked pricing about the reference when then a market, pricing go the follow-on have QX to impact in enters mechanism And at a see the there countries currency back You is in of will and hold. actually there's a take and impact doesn't starting was The

is XXXX look business. well that women's that the decrease you the came distribution health Hungarian the of If as to businesses majority business XXXX, as the vast out, actually

business euro the QX. see there do currencies a by pattern other euro the So out stable, you is QX unfortunately European play earlier, quarters basket. that is as mentioned weakening Kåre that's the amongst to the And kind of fairly but in exacerbated and

So to for like growing another it, we in put like have currency, business in local Generics way a Europe.

question? have David, another do you

but I'll you. that's the in mentioned Generic don't products, you. again. seasonality Thank look you go and back No, that the see I Thank just it.

Thank you.

comes question from line Abraham from Citi. of of the Liav next line Your

about for AJOVY Good final question drug bit blockbuster on morning. thoughts change the this as competitive the and you can being revenue And dynamics? me. company? following on first A the few view given still then for talk your dynamics the potential a Copaxone. in launch the Any peak perhaps Do the pricing more of weeks you little potential secondly, for from a

are And I Mylan's talked if to price about think in elaborate don't can that. dynamics any last the you quarter? still on you And the the think in last quarter, Copaxone, in for U.S.? with growth positive in of prepared $XXX million cut have remarks Copaxone I net $X.X mentioned number terms impact I billion Thank know updated from you this seen for you is anticipating, guidance you the quarter. year you.

Yeah.

about to listening good in AJOVY give product. first. trend. any as So peak all like of any very numbers. sales are you And for you But the I let's specific never know, talk And with know discuss I I'd

can has do products see of you So can you look then will a math. the out at that and chart look going of door. your volume the we And if provided course you at trend that you

the list know You price what is.

list price Europe. know probably You in is the what

in market the Europe roughly. of size the know You

U.S. how also much. you going and if any think And rest has so assume But you then And you and in and predicted whatever, or then means no a in share the all going. this course class three and also of great when it's some market, to those specific both hands. we're to do of and not you third tell where And really be if fair get of calculations, if but will But we're numbers. you it's the you'll about get going four way a multi-billion-dollar quarter great that in a is just your have So be they potential, is will that players, world. your to you're get to Europe that roughly will product. or get secret class. on in it or that competitive the And a we where a there blockbuster

So that you was Brendan? one question on development, And see how of Copaxone. we the comment questions. maybe Then can a the there's price on

happy and sure, development. be to price comment Yeah, the on Copaxone I'd

some additional dropped the market So price was the saw pricing XX% the the put June, happened. category. XX erode And their at market, think QX certainly it of when June on I that of XX%, from generic, that Mylan XX%. pressure you late share at milligram WAC the It close our XX%,

driving there as pressure some additional our Copaxone. less hence But in share the the this So number see for the a piece for other responsible said partially it billion you was year. positive that pricing Copaxone on decline. as was as I that X% XX about which milligram adjustment, saw. we that updated And that was was range was U.S., one in than the QX there for we the forecasted In growth far market And probably and QX, $X.X had ending guidance, Copaxone.

So than last that's slightly time. higher

question. Next

Thank you.

Your Umer next question the comes from of line ISI. Raffat from Evercore

exists to $X.X come think billion? Kåre, America Generics – stabilization, Is also $X guys Is on reference Hi, thanks so makes you you pricing suggesting do heard now? closer billion? what it is that much billion, ask floor specifically I which starting which question. I've are up call, it stabilize $X.X that still Generic you my because for what the Generics taking truly And when me stabilize? price several times this ask is seeing to word North

that Thank you for question.

So a terms in U.S. this value I Generic in halved had ago, market the company we getting three-year need into When I roughly first get year fall, perspective. in in of free been a all, of joined things to I think think basically period. dollar the

looking period. that down certain then parameter things swings stabilization level. Now and halved is whatever about well, a talk that's at a a to in you're and that we're you level when gets What when around serious up get bit three-year stabilization, dynamics talking

at theoretically between going it no something swing stabilized. clearly It's going down. up. might there's up means So if stabilizes not not and XXX, clearly That but and clear trend. XXX, XX down, It's

keeps a on or which continued to again a decline, it opposed declining. As starts growing turnaround, where

a close XXX I'm from it? year today from what or we be about, going now. could U.S. again is then And who with that something will have explain talk my that XXX. is XXX So what like quarters a be But I it it's might I know. be years. get at that mean Is it's to doing a it's one And be one number. be that's XXX down. back can probably be That's another been at years it's at to today, don't year And of will beginning Generics, are no the other. from mean X% of that it's I you And three if But in how kind up that's it's or XXX read rhetoric, a that for last that like seeing stabilization. trend three was be something to dropping where saying that some there's you stone, whether really now, analyze year to it's whether It Does should if think maybe not a the going whatever you about difference either. there number now, XX going and random. ago within close If we're clear is number, grow that the it's I to it. what that's talking to going and nobody big to with going to X?

mentioned the the also, slides on word stabilization? was Sure. specifically stabilization Kåre, price price Because too. But

we have in that increasing pricing what you prices a is discounts, down talking and downward stabilization actions, what in what's the which takes this until believe at basically year our that been for – spiral, by price, means to four that you can And year all stop have customers, ever which last U.S. Yeah, this if I price unsustainable years. three, then now, happening supply it's sustainable. December. we've then all we means to is doing product been level. starting explain, That's Generics last

some get if you If can't from to or you go that. pay to it Chinese us. want to you don't But that, do there want Indian manufacturer, buy

for can That you value, stable customers. Generic gets products call double that whatever anymore. of launch, pricing launch I have the second a day Now to the towards first to like kind you the not overall the that the get you profitable us, does for that at which change of at list price for spiral launch don't of a and that the or syntopical has the this Once effect point, commercial you priced price them. is would the call or pricing long fair third beneficial that's portfolio the what dynamic our end higher a of want and that's approach

of be the not is stabilizing. which but So will dynamics the the means are market accelerating. basic Again, course still totality the of just dynamic there, stabilizing, it's

revenue, point out stable actually slides they don't say say Yeah, and pricing. the I would that stable

that. mention didn't we So

Thank you.

And you. final Ronny Thank Bernstein. comes today Gal your from line question of the from

good Hi, the and everybody. in. appreciate morning, fitting Congratulations Two nice for quarter me you questions.

is The Generic the in around Generic, one North first margin America.

appreciate the a math, done where I reported XX% margin. the assume and has basically took I've So little stabilization. revenue it for branded product your operating

a end North margin Generic XX%. with America around you that, up do you new operating being If

CapEx, a that little to And and and no profit. the XX%, XX%. business end add bit for fair typically You which where cost between of capital in you you're is a Generic of G&A the companies with stumped global a up

twofold. question guess So I is the

misunderstanding percentage you branded margin And here used just I that And to the have Generic am up Rituxan the to where question I segment? operating when get push think obviously second, it'll the Where you XXXX margin all, division of second we First and used points. do report your the those between there? Generic? a level operating settlement. of at around stabilize? few is that can you The

to gets first, operate do the can prescribed indication? So is, have are product to And your you ones all you settlement. for labeled still the guess label? the the outside limited the of conversation if indications? the you, I thank in the you Or in freedom sued get question the appreciate

very interesting those questions. for you Ronny, two Thank much,

to the that Rituxan, is Generics. push you are That's will a day correct I numbers answer. every up long-term business. the joined many of continue will effort, won't do been operating coming optimization we're It's Generic to that that U.S. both don't what hard margin confirm course this as your doing on. think that, to from what company, the one, rational Obviously, of about that launches our U.S. then so sorry, different of And research business. in with to of so and we the the Generic involves to we over I continue you we details totally because give first correct saw But many, consequence not that settlement complicated order I'm margin but hard very I what will improve of we operation, The are to would And have the we've it need call our With supports very to margin. to a working improve we when I of the But That's the a Generics. I the was actually love do give I satisfied details, working but I do. regard is I supports years. to numbers would are year. working we the the the the margin. short idea confidential. the get are manufacturing regulatory correct. that into But portfolio course U.S. you

comments So give it. any I can't really you to

Sorry that. about

you. Thank Great.

Have for forward you a We to day. Well, for us thanks to you, joining and talking everybody the today thank next look Okay. week. call. And tomorrow, again. today, good

and Ladies disconnect. this reservation wishing today. and Thank all country +XX XXX to now conference, be XXXX XXXX UK for on for alternatively, may code XXXXXX. you accessed participating, those your you conclude dialing facility does That the gentlemen, the on can or you. conference The number is Thank XXXX for by review within replay XXXXXXX.